Slide 1: Annual Group Results for the year ended 31 August 2024
Annual Group Results for the year ended 31 August 2024
Slide 2: Contents and key features
Contents Financial summary 02 Key features Commentary 03 Group turnover up Independent auditor’s review report on condensed consolidated financial statements 05 9.2% Retail turnover up Consolidated statement of 06 comprehensive income Consolidated statement of 07 11.7% financial position Trading mar
Slide 3: Clicks Group: leader in the healthcare market
1 As a leader in the healthcare market Clicks Group is committed to increasing access to affordable healthcare for all South Africans. Clicks is the country’s leading health, wellness and beauty retailer and foremost pharmacy chain, with an expanding network of over 930 stores and 720 pharmacies sup
Slide 4: Financial summary
2 Financial summary Year to Year to 31 August 31 August % 2024 2023 change Consolidated statement of comprehensive income Turnover R’000 45 437 640 41 621 681 9.2% Gross profit R’000 10 632 419 9 313 851 14.2% Total income R’000 13 714 721 12 160 474 12.8% Headline earnings R’000 2 844 598 2 542 916
Slide 5: Commentary
3 Commentary Overview Total income grew by 12.8% to R13.7 billion. The retail margin expanded by 40 basis points following good growth across Clicks Group continued to demonstrate the resilience of its all categories, in particular the beauty and personal care business model and the defensiveness of
Slide 6: Commentary continued
4 Commentary continued Outlook Additional information While consumer spending is expected to remain constrained Dividends Tax (DT) of 20% amounting to 113.2 cents per in the short-term, the medium-term outlook for the consumer ordinary share will be withheld in terms of the Income Tax environment is
Slide 7: Independent auditor's review report
5 Independent auditor’s review report on condensed consolidated financial statements To the shareholders of Clicks Group Limited Conclusion Based on our review, nothing has come to our attention that Introduction causes us to believe that the accompanying condensed We have reviewed the accompanying
Slide 8: Consolidated statement of comprehensive income
6 Consolidated statement of comprehensive income Year to Year to 31 August 31 August % R’000 2024 2023 change Revenue 48 609 808 44 560 532 Turnover 45 437 640 41 621 681 9.2% Cost of merchandise sold (34 805 221) (32 307 830) 7.7% Gross profit 10 632 419 9 313 851 14.2% Other income 3 082 302 2 846
Slide 9: Consolidated statement of financial position
7 Consolidated statement of financial position As at As at 31 August 31 August R’000 2024 2023 ASSETS Non–current assets 7 930 394 7 201 109 Property, plant and equipment 2 845 032 2 643 136 Right-of-use assets 3 505 081 2 999 297 Intangible assets 946 363 968 207 Goodwill 209 114 204 829 Deferred t
Slide 10: Consolidated statement of changes in equity
8 Consolidated statement of changes in equity Number of shares Share Share R’000 ’000 capital premium Balance at 1 September 2022 243 970 2 440 1 064 953 Transactions with owners, recorded directly in equity Dividends paid to shareholders – – – Shares repurchased and cancelled (2 809) (28) – Total t
Slide 11: Consolidated statement of changes in equity (continued)
9 Foreign Cash flow Cost of currency hedge hedging translation Distributable Total reserve reserve reserve reserve equity 7 234 (4 983) (6 860) 4 636 023 5 698 807 – – – (1 562 794) (1 562 794) – – – (703 492) (703 520) – – – (2 266 286) (2 266 314) 53 226 (17 846) 6 353 2 537 369 2 579 102 – – – 2
Slide 12: Consolidated statement of cash flows
10 Consolidated statement of cash flows Year to Year to 31 August 31 August R’000 2024 2023 Cash effects from operating activities Profit before working capital changes (refer note 1) 5 901 873 5 190 836 Working capital changes (refer note 2) 99 357 672 811 Cash generated by operations 6 001 230 5 8
Slide 13: Notes to the cash flow statement
11 Notes to the cash flow statement Year to Year to 31 August 31 August R’000 2024 2023 Cash flow information 1. Profit before working capital changes Profit before tax 3 893 808 3 471 105 Adjustment for: Non-cash flow items: Depreciation and amortisation 1 742 293 1 519 026 Fair value adjustments o
Slide 14: Segmental analysis
12 Segmental analysis For the year to 31 August 2024 Retail 1 Distribution 31 August 31 August 31 August 31 August R’000 2024 2023 2024 2023 Statement of financial position Property, plant and equipment 2 486 154 2 287 344 358 878 355 792 Right-of-use assets 3 473 435 2 952 146 31 646 47 151 Intangi
Slide 15: Segmental analysis (continued)
13 Intragroup elimination Total operations 31 August 31 August 31 August 31 August 2024 2023 2024 2023 – – 2 845 032 2 643 136 – – 3 505 081 2 999 297 – – 946 363 968 207 – – 209 114 204 829 (181 140) (151 463) 7 063 280 6 309 809 (913 997) (944 721) 3 057 282 3 019 488 – – 2 704 961 2 455 176 (4 71
Slide 16: Accounting policies and notes
14 Accounting policies and notes 1.1 The condensed consolidated financial statements for the year ended 31 August 2024 have been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS ® Accounting Standards and the Financial Pronouncements as issu
Slide 17: Revenue and headline earnings reconciliation
15 1.6 Revenue (continued) 31 August 31 August % R’000 2024 2023 change Distribution turnover can be further disaggregated between the following categories: Fine wholesale 13 205 444 13 268 057 (0.5%) Clicks 7 414 243 6 943 527 6.8% Private hospitals 4 958 817 5 260 010 (5.7%) Independent pharmacies
Slide 18: Store footprint and analysis of shareholders
16 Store footprint Clicks The Body Total Clicks Baby Shop Sorbet retail Number of stores at 31 August 2024 930 6 57 9 1 002 as at 31 August 2023 881 4 61 4 950 opened/acquired 53 2 – 6 61 closed/disposed (4) – (4) (1) (9) Presence in Clicks stores at 31 August 2024 257 Number of pharmacies at 31 Aug
Slide 19: Definitions
17 Definitions Capital expenditure Interest–bearing debt, including cash, and lease payments, net of a tax charge at Maintenance capital expenditure to shareholders’ interest at year‑end the group’s effective tax rate, expressed as a Capital expenditure incurred in replacing Interest–bearing debt (i
Slide 20: Presentation: Annual results for the year ended August 2024
18 Presentation ANNUAL RESULTS for the year ended 31 August 2024 Contents 01 Review of the year 02 Financial results 03 Trading performance 04 Strategy and outlook 05 Questions 2 Clicks Group Annual Results 2024
Slide 21: Review of the year
19 01 Review of the Bertina year Engelbrecht 3 Review of the year • Performance continues to prove the resilience and defensiveness of the group • Diluted HEPS up 14.3% • Clicks opened 936th store and 720th pharmacy • Unicorn resolution approved by DoH in August 2024 • Market share gains in all core
Slide 22: ESG integrated into the business
20 ESG integrated into the business • In FTSE4Good Index for last eight years • AA ESG rating from MSCI • Continued investment in bursary, graduate and learnership programmes • Supporting gender diversity & empowerment • 89% in UN Women's Empowerment Principles • R1.2bn bought from black-owned small
Slide 23: Financial highlights and turnover
21 Financial highlights Turnover up Total income margin Trading margin Diluted HEPS up 9.2% up from 29.2% to up from 8.7% to 14.3% Retail turnover up 11.7% 30.2% 9.2% to 1 193.5 cps UPD total managed turnover down 6.7% Cash generated Returned to Return on equity Total dividend up by operations share
Slide 24: Total income and retail trading expenditure
22 Total income % 2024 2023 R’m 2024 2023 change % margin % margin Retail 12 264 10 836 13.2 34.6 34.2 Distribution 1 769 1 600 10.5 10.0 9.3 Intragroup turnover (318) (276) Total group 13 715 12 160 12.8 30.2 29.2 • Retail margin driven by good growth in beauty, Sorbet franchise fees and fewer phar
Slide 25: Distribution expenditure and trading profit
23 Trading expenditure – Distribution % R’m 2024 2023 change Depreciation – PPE 58 29 96.7 Depreciation – ROU asset 17 18 (1.7) Occupancy costs 4 4 2.7 Employment costs 378 359 5.3 Other costs 738 703 5.0 Total distribution costs 1 195 1 113 7.4 • Depreciation of PPE driven by investment in systems
Slide 26: Growth in turnover, profit and margin; inventory
24 Growth in turnover, profit and margin 9.2% 8.7% 8.3% 8.4% 44 000 8.2% 5000 45 438 40 000 41 622 39 587 36 000 37 339 4000 4 172 32 000 33 889 3 623 28 000 3000 3 325 24 000 3 045 2 813 20 000 16 000 2000 12 000 8 000 1000 4 000 - 0 2020* 2021* 2022* 2023 2024 Turnover(R’m) Trading profit (R’m) Tr
Slide 27: Cash management and capital expenditure
25 Cash management R’m 5 902 99 (1 008) (251) (1 068) (891) (1 676) 2 705 (835) (22) 2 455 Cash Operating Repayment Working Net finance Taxation Capex Dividends Share Other Cash FY2023 profit of lease capital costs buybacks investing FY2024 before liability movements activities working capital • R1.
Slide 28: Medium-term financial targets and sustained performance
26 Medium-term financial targets Achieved Medium-term in FY2024 target ROE (%) 46.4 40 – 50 ROIC excluding IFRS 16 (%) 45.6 40 – 50 ROIC (%) 29.7 20 – 30 ROA (%) 14.3 11 – 15 Net working capital days 35 30 – 35 Group trading margin (%) 9.2 9.0 – 10.0* Retail 10.2 10.0 – 11.0* Distribution 3.2 2.8 –
Slide 29: Share price outperformance; Trading Performance
27 Continued share price outperformance 600 600 500 500 10-year CAGRs 400 400 Clicks Group share price: 300 300 18.5% 200 200 Food & Drug Retailers 100 100 Index: 7.1% 0 0 Top 40 Index: Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Sep-2022 Sep-2023 Sep-2024 Mar-2017 Mar-20
Slide 30: Clicks business review: retail sales performance
28 Clicks business review Clicks Group Annual Results 2024 21 Retail sales performance % change % contribution Pharmacy 8.9 27.5 Front shop health 10.7 25.3 Beauty and personal care 15.9 32.1 General merchandise 10.1 15.1 Total turnover 11.7 100.0 • Comparable stores turnover growth of 8.4% • Inflat
Slide 31: Market shares and maintaining value
29 Market shares % 2024 2023 Health Retail pharmacy* 24.2 23.7 Front shop health** 34.2 33.1 Baby** 22.5 21.0 Beauty Skincare** 43.8 42.7 Haircare** 33.1 32.6 Personal care** 22.1 20.7 General merchandise Small electrical appliances** 19.0 19.5 * Per IQVIA (Private Retail Pharmacy S1-6) (restated) *
Slide 32: Differentiating product offer; personalisation
30 Performance and strategy • Differentiating our product offer • Private label +13.5% to 25.4% of sales (front shop 30.3%, pharmacy 11.5%) • Clicks Made 4 Baby nappy range and Sorbet BB Cream voted SA Product of the Year in their categories • Six Clicks Baby stores and five store-in-stores performi
Slide 33: Extending convenience; UPD business review
31 Performance and strategy • Extending convenience Format Total • 936* Clicks stores with 720 pharmacies Convenience 712 Destination 224 • 51% of population < 5.0km of a pharmacy Total 936 • Planning rollout of UniHealth specialised format • Opening clinics and trialling smaller formats • 234 store
Slide 34: Fine wholesale turnover and review of the year
32 Fine wholesale turnover 56.1% • Wholesale turnover down 0.5% Clicks (+6.8%) (up 1.2% in H2) 37.6% Private Hospitals • Impact of systems change on Clicks (-5.7%) purchases from UPD in H1 (H2 +8.5%) • Hospital business still recovering 6.3% (H2 -3.4% vs H1 -8.1%) Independent Pharmacies and other Ch
Slide 35: Strategy and outlook
33 04 Strategy and outlook Bertina Engelbrecht 31 Outlook • Consumer environment is improving due to lower inflation, interest rates and fuel costs, stronger Rand and reduced loadshedding • The group is well positioned due to: • Competitive advantage in defensive health and beauty sectors – with mar
Slide 36: Outlook (continued) and Questions
34 Outlook (continued) • Medium-term target of 1 200 Clicks stores • Plan to open 40 - 50 stores and pharmacies per year • Higher level of dispensary openings in FY2025 • Roll out of 10 UniHealth specialised pharmacy format • R1bn p.a. in capex planned - continued investment in systems • Executive t
Slide 37: Disclaimer
35 Disclaimer Clicks Group has acted in good faith and has made every reasonable effort to ensure the accuracy and completeness of the information contained in this presentation, including all information that may be defined as 'forward-looking statements' within the meaning of United States securit
Slide 38: Notes
36 Notes Clicks Group Annual Results 2024
Slide 39: Slide 39
Slide 40: Corporate information
Corporate information Clicks Group Limited Company secretary Incorporated in the Matthew Welz, LLB Republic of South Africa E-mail: companysecretary@ Registration number clicksgroup.co.za 1996/000645/06 Income tax number Auditors 9061/745/71/8 KPMG Inc. JSE share code: CLS ISIN: ZAE000134854 Princip